Mahindra & Mahindra to sell entire stake in arm Sampo Rosenlew to Tera for ₹52 crore

Automaker Mahindra & Mahindra Ltd (M&M) on Monday (September 29) said it has entered into a Share Purchase Agreement (SPA) with Tera Yatirim Teknoloji Holding Anonim Sirketi (TERA) to sell its entire stake in Sampo Rosenlew Oy (SAMPO), a wholly owned subsidiary of the company.

The agreement was signed on September 29, 2025, and the transaction is expected to be completed by October 6, 2025. Following completion, SAMPO will cease to be a wholly owned subsidiary of M&M. The consideration for the transaction is €5 million (approximately ₹52 crore at the prevailing exchange rate).

SAMPO contributed ₹370.98 crore in revenue for FY25, representing 0.23% of M&M’s consolidated turnover, while its net worth stood at ₹182.02 crore, accounting for 0.24% of the consolidated net worth of the company excluding non-controlling interest. After consolidation adjustments, SAMPO’s net worth as of Q2 FY26 was nil.

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M&M said the divestiture aligns with its strategic vision to optimise its portfolio and focus resources on opportunities that best position the company for long-term success.

The company noted that Sampo has played a key role in enhancing its farm machinery capabilities, with several of its technologies integrated into M&M’s operations. The transition, according to M&M, will enable SAMPO to pursue new innovation and growth opportunities under TERA’s ownership.

Founded in 1853, Sampo Rosenlew Oy is based in Pori, Finland, and specialises in combine harvesters and forestry machines, employing around 200 professionals. Its net sales in 2024 were approximately €41 million. Shares of Mahindra and Mahindra Ltd ended at ₹3,416.90, up by ₹19.75, or 0.58%, on the BSE.

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